A bank filed a recovery case against me in Silchar for an unpaid loan; what is my defence?
MA Asked by Madhuri Dixit from India
Quick Answer
The bank can file an Original Application before the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 for recovery above twenty lakh rupees, and the DRT in Silchar has jurisdiction.
Detailed Legal Analysis
The bank can file an Original Application before the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 for recovery above twenty lakh rupees, and the DRT in Silchar has jurisdiction. You can file a reply raising defences such as incorrect computation, improper interest, or lack of security interest.
The DRT can pass a recovery order enforceable as a decree, appealable to the Debt Recovery Appellate Tribunal and, on law, to Gauhati High Court. Assam Rent Control Act 1972 does not apply, as the RDDB Act is central and overrides State laws.
The bank must prove the debt and security. Interim relief such as attachment can be sought.
Personal guarantees can be pursued concurrently before the DRT.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.